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| Alternatives to standard medical insurance options |
Alternativesto standard medical insurance options
If you simply shop blindly around the internet
for health insurance, you will receive multiple contacts from health care
programs, many of which are NOT insurance. They are not illegal, nor are all of
them scams—although some are.
They are discount programs which work in a
variety of ways. In some cases, if you have insurance with a high deductible, a
discount program may help you meet that deductible. But you need to be able to
recognize them. The following descriptions will give you a general idea of how
these programs work.
·
Discount
Health Care Plans
A discount plan is exactly what it sounds like. You pay a monthly premium. In return, the administrators of the program negotiate with your doctor or hospital to accept a reduced fee. You have to pay the reduced fee yourself.
The company does not reimburse you, nor does it pay any portion of your medical bill. They do nothing but negotiate to get you a lower fee. Some of these programs claim to reduce your medical costs by up to 80%, but 20% to 30% is more common.
Before paying for a discount policy, you need to contact your area hospital and your regular doctor on your own. Take the time to visit your doctor's office with literature from the company that you can show to the person who handles the billing.
If they have never heard
of the company, steer clear. Callers that promise enormous discounts—and demand
a credit card or some payment over the phone in order to "guarantee"
the lowest rate—are sources of the biggest scams. Nevertheless, legitimate
discount programs do exist.
·
Direct
reimbursement programs
You may be familiar with
these programs as "personal accident" coverage, or something that
will pay you a certain amount per day in the hospital or emergency room if you
have a covered accident. You pay the hospital or facility whatever is charged.
Then you submit a report to the company, and they send a check directly to you.
Years ago, you had one
very low premium for the entire year and could get it for yourself or for your
entire family. A big selling point for those who had children was that if a
child fell and cut his knee and required a visit to the emergency room, you
could turn in a claim and collect even if you had insurance.
Direct reimbursement
programs still operate much as they did in the past, but many companies have
expanded coverage to include illness as well as accidents. Some also reimburse
you for laboratory work or x-rays.
You receive a schedule
telling you how much you can collect for any covered event. These programs are
generally more reliable than a mere discount program, especially when run by
well established companies.
·
Brotherhood
and Fraternity programs
These, if financially
solvent, are some of the best alternatives to regular health insurance. They
are run by organizations whose members contribute to the "pot," which
is doled out when a member has a need. At one time you had to be a member of
the fraternity, but some are now accepting non-members.
Usually, they do not pay
for routine doctor's visits or for medicine, but they pay for catastrophic
illness or for hospitalization. It is not considered insurance, but you cannot
join the organization if you do have other insurance.